Real Money

Gold Prices Plummet as Fund Managers Duck Out

The precious metal is at its lowest level since August.

NEW YORK ( TheStreet) -- Gold prices fell Friday for the fourth day in the trading week after prominent hedge fund managers revealed their reduced holdings in the yellow metal.

Gold for April delivery sank $26 to settle at $1,609.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,636 and as low as $1,596.70, while the spot price was plunging $28.20, according to Kitco's gold index.

The University of Michigan Consumer Sentiment Index printed at 76.3 for February, which was better than analysts' consensus of 73.5. The New York Empire State manufacturing survey came in at 10 for February, which was higher than the forecast for a flat read on the month.

Gold prices often move contrary to economic data, and the positive reports diminish the appeal of gold as a hedge against economic uncertainty.

Offsetting the positive data was a Federal Reserve survey that showed industrial production fell 0.1% in January. Economists expected a 0.2% increase.